Thoughts on Ad Valorem Assessment of Conservation Lands: A Conversation with George Wheeler

Posted by Amanda L. Brock on February 01, 2012

George Wheeler is a 30 year employee with the Florida Department of Revenue. He currently serves as IDP Administrator in Classified Use Administration. His responsibilities as Senior Appraiser at DOR include the areas of agriculture/greenbelt, conservation, and working waterfront.

Since my recent article in the Florida Land Development News about property taxation and potential exemptions, I have received numerous questions about the treatment of conservation lands for ad valorem taxation. I first ran into this issue some time ago, and had the pleasure of working with George Wheeler with the Florida Department of Revenue to determine the best option for the landowner in that case. For this blog post, I imposed on George again and he was kind enough to chat with me about this rather  misunderstood area of property taxation.

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Florida Property Appraiser Agricultural Tax Classification Denial Appeal Deadline Approaching

Posted by Cody Vaughan-Birch on July 07, 2011

In my household, a letter from the county property appraiser or the county tax collector is typically met with a "what-now" groan because it's rare for good news to come from those offices. If you're an agricultural land owner, you may have recently received such a letter from your local property appraiser notifying you that your agricultural tax classification for the 2011 tax year has been denied. And while a groan may be the proper response, tossing this letter in a pile and ignoring it is not - because you now only have 30 days to appeal this denial to the county's Value Adjustment Board.

An agricultural classification can save a property owner tens of thousands of dollars in property tax owed to the local government, and according to the Lee County Property Appraiser's Agricultural Division, agricultural classification denials for Lee County were mailed on or about June 27, 2011. Typically, the rationale for denial is that the property is not being "used primarily for bona fide agricultural purposes" as required by F.S. 193.461(3)(b). Any appeal of this determination must be timely filed, and evidence and testimony must be presented at a hearing to support the contention that a bona fide agricultural use existed on the property as of January 1, 2011. The statute sets forth 7 factors to be considered in determining whether a "good faith commercial use of the land" was in place:

  1. The length of time the land has been so used.
  2. Whether the use has been continuous.
  3. The purchase price paid.
  4. Size, as it relates to specific agricultural use, but a minimum acreage may not be required for agricultural assessment.
  5. Whether an indicated effort has been made to care sufficiently and adequately for the land in accordance with accepted commercial agricultural practices, including, without limitation, fertilizing, liming, tilling, mowing, reforesting, and other accepted agricultural practices.
  6. Whether the land is under lease and, if so, the effective length, terms, and conditions of the lease.
  7. Such other factors as may become applicable.

These appeals can become extremely complicated, and without the presentation of competent, relevant evidence and testimony, a property owner's chances of success can be very low. So, if you tossed that denial letter in a "to-do" pile, dig it out and consider whether you would like to appeal the denial. The filing fee to appeal the denial is as low as $15, however waiting too long to address the issue can be quite costly.

 

Agricultural Tax Classification a Valuable Tool

Posted by Cody Vaughan-Birch on February 12, 2011

The landscape of Florida has seen rapid change over the last several decades, and none has been more drastic that the urbanization and development of Florida's farms and agricultural areas. With increased development comes higher property values and increased property taxes. In an effort to assist farmers and agricultural landowners, the Florida Legislature passed bills that became known as the Greenbelt Laws, providing a property tax break for agricultural lands.

128px-Angus_mix.JPGCurrent laws allow for an agricultural tax classification for bona fide, commercial, agricultural use of land. Over the years, Florida courts have been called on to determine the balance between the tax benefit provided to agricultural landowners and the need for cities and counties to accurately assess non-agricultural lands and collect the taxes for municipal services. Today, it is not uncommon for a county and a landowner to disagree regarding the bona fide nature of a use, or the extent of that use on the property. For example, a property appraiser may deny the classification on a property because he feels that there are too few cows grazing on the land, or not enough has been done to properly care for the land.

So what can a landowner do to ensure that his or her agricultural classification is granted?

  • Know the commercially-accepted practices for the type of agriculture you are engaged in. For example, if all cattle ranchers mow and seed their pastures annually, following these practices may support the contention that a property should be granted the classification.
  • Ensure that there is documentation regarding the improvements or activities that are part of the agricultural operation, including any lease agreements. Some owners hire professional property managers to ensure that the agricultural use is managed properly.  
  • Communicate with the property appraiser's office before a determination regarding the classification is made can be beneficial, as well, so that a property owner may provide additional documentation or information that will be persuasive.

Ultimately, if a property owner cannot convince the local property appraiser that a property should receive an agricultural classification - and a drastically lowered tax bill - the owner must seek appeal to the Value Adjustment Board. This appeal process generally hinges on the evidence and testimony related to the agricultural use, making it even more important to keep documentation regarding activities and expenditures related to the agricultural use. 

EPA Numeric Nutrient Criteria

Posted by Cody Vaughan-Birch on February 02, 2011

On October 15, 2010, the Environmental Protection Agency will usher in a new era of water quality regulation for Florida’s lakes and flowing waters. Known as the Numeric Nutrient Criteria ("NNC") rule, the final rule will establish specific numeric limitations on nitrogen and phosphorous concentrations in fresh water lakes and streams.

Before the implementation of this rule, Florida water quality rules were based on a narrative standard that used descriptive language to identify polluted bodies of water. The rule also creates restoration standards for water bodies that are designated as “impaired.” Impaired waters may be waters that are deemed to be polluted to the point where they no longer are suitable for their intended use. The new rule only applies to fresh water, however a similar NNC rule for coastal waters and estuaries is slated for consideration in 2011. These new water quality standards will have significant economic and operational effects on municipalities, agricultural operations, utilities, and future development.

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